Do I Need a License or Certification to Operate a Traffic Control Business?
- Nov 18, 2025
- 2 min read
Updated: Nov 24, 2025
Starting a traffic control business is an exciting opportunity in the construction and infrastructure industry. With growing demand for road construction, utility work, and event traffic management, these businesses play a vital role in public safety.
However, before you begin, you need to understand the licenses, certifications, and permits required to operate legally. Compliance isn’t just about avoiding fines—it’s about building trust with clients and qualifying for lucrative contracts.
Why Licensing and Certification Matter
Traffic control businesses work in high-risk environments like construction zones and public roads. Proper licensing and training:
Ensures compliance with local laws
Reduces liability risks
Helps you qualify for government and contractor bids
Licenses and Permits You May Need
Business License – Required in most states and municipalities
Contractor Registration – Some states classify traffic control as a specialty contractor service
DOT Permits – For lane closures and detour setups on public roads
Certifications for Traffic Control Businesses
Flagger Certification – Mandatory for employees managing traffic
Traffic Control Supervisor Certification – Required for overseeing operations
OSHA Safety Training – Ensures compliance with workplace safety standards
Insurance Requirements
Most contracts require proof of insurance before work begins. Essential coverages include:
General Liability Insurance – Protects against third-party injuries
Commercial Auto Insurance – Covers vehicles transporting equipment
Workers’ Compensation – Required for employees
Equipment Insurance – Protects traffic control gear
Commercial Property Insurance – Protects your office and storage facilities
How Licensing and Insurance Work Together
Many municipalities and contractors will not award contracts unless you provide:
Proof of business license
Employee certifications
Insurance certificates
Having these in place positions your business as reliable and compliant, giving you a competitive edge.
Steps to Get Licensed and Certified
Check State Requirements – Visit your state’s DOT and contractor licensing boards.
Complete Training – Enroll employees in flagger and OSHA safety programs.
Apply for Permits – Secure DOT permits for lane closures and detours.
Get Insurance – Work with a specialized agency like Wexford Insurance to meet coverage requirements.
Final Thoughts
Licensing and certification are not optional—they’re critical for legal compliance and winning contracts. Pair these requirements with specialized traffic control business insurance to protect your operations and meet client standards. Wexford Insurance can help you secure the coverage you need.
Ready to safeguard your business?
Contact us today.
